Moving to Saudi..Income tax & Rental Income implications

I’ve just accepted a position in Saudi Arabia and am presently trying to get “all of my ducks in a row” before I take off. I do have a couple of questions about the tax implications of renting out my property and my income whilst in Saudi-

I will be renting out the apartment that I own. As a non-resident I understand that I will be liable for tax in the order of 20%- I wondered if this is 20% of the total or do the same terms apply as per resident persons i.e. less mortgage interest deduction, agents fees, insurance, maintenance etc? Or , if not, can I claim ANY of these expenses against the 20% tax payable?

My apartment has Section 23/ Owner occupier relief. I’ve been claiming Owner Occupier tax relief on the property for the last 7 years, there is 3 years left on the Owner Occupier relief- Probably a silly question but can I use any of the Section 23 relief to offset against the tax that would be due on the rental income from the property- Or do you just get one type of relief per property?

I will be in Saudi for approx two years, during this time my income will be paid into my Irish bank account. Will I be liable for tax on any of this income? At the end of my employment I will be given a severance payment that may not come through until a month or so after I arrive home – will I be liable for tax on any of this severance payment as I may be back in Ireland by the time that it comes through?

Thank you for taking the time to read my post!
Sara

For the 20% with holding tax, it's 20% of the full rent you receive but you can claim back a lot of it as you can offset it against mortgage and other expenses you mentioned. Best of luck in Saudi Arabia.

Is it not the case that the 20% withholding tax does not apply if you appoint an agent to deal with the rental income, that can be a family member as well as a letting agent.

You really should get professional advice regarding your Saudi income.

Hi

You may find this blog post useful. It explains the key issues facing an individual letting out an Irish property while they're living abroad.

http://mcgibney.ie/2012/12/24/irish-...-do-about-tax/

Your entitlement to owner occupier relief will cease once you stop living in the property. Section 23 rental & owner-occupier reliefs are not normally interchangeable. In any case, unless your property can command an unusually lucrative rent, its unlikely that the overall tax burden on your rental income will be significant, if you are claiming all the usual deductions.

Thank You

Thank you for your advice.

Sara